Reselling properties seems to be a slam dunk for real estate wholesalers and flippers. Tens of billions of dollars in capital, and millions of buyers are looking for house deals, and rental apartments. So, where do you find more inventory to serve them and scale up your investment business?

Networking

Now that the worst of the virus seems to be behind us for now, and people are eager to get out and mix in person again, this could be the time to kickstart your networking.

This can be casual networking as you go about your daily life. Or it can be at professional networking events. If there aren’t any happening near you, maybe you can start your own.

Expand from the usual real estate investor and agent circles. There may be attorneys with landlord clients who really want to sell. Or corporate executives who need to restructure their real estate, or help employees with their housing situations.

Aged Leads

Some of the most successful high volume real estate wholesalers find that 90% of their deals come from the follow up.

Every lead can be a deal. It is just a matter of being there and connecting when it is the right time for them. So, consider a new campaign targeting your old leads.

Update your database and CRM. Try email newsletters, text, and other contact methods you have to reconnect with them.

Mortgage Lenders & Note Investors

This is a space which has really exploded in popularity over the past couple of years. Of course, that doesn’t mean that every new lender and note investor is being successful. Or that every one of their loans is performing. These can be great relationships for tapping into a regular volume of deal flow.

Direct Mail

While people may be emerging from lockdowns again, travel is still very limited. Especially ahead of peak summer travel season, this may be time to hit prospects with direct mail at home.

Marketing seems to be coming full cycle again. The FTC says consumers lost $770M to social media scams alone last year. People are quickly losing trust in online marketing. Showing up in the real world could help you stand out. Just don’t do those cringeworthy old postcards.

Be creative and unique, and mail something that will stand out.

Create A Niche Destination Website & Blog

The bulk of the real estate activity now is moving away from restrictive and dense big cities and to new areas. Why not create a destination website and blog for movers and investors exploring your area for the first time? This could be one of the easiest ways for you to stand out online.

 

There are a lot of myths and misconceptions about real estate that can confuse investors. That’s in addition to changing trends which can lead to focusing on the wrong deals or not being active enough in the right areas.

Here are some of these factors that you want to be alert to now, and use to guide you in maximizing your potential this year.

Community Isn’t Really That Important

As with micro lofts, and tiny urban condos before, there has recently been a lot of hype about multifamily, and developers building in fabulous community spaces.

According to Pew Research, 69% of those surveyed found the most meaning in their life within their families. Just 16% said they were attached to their local communities.

That may suggest the real estate that is most in demand is going to be single family homes, or multigenerational homes in the suburbs and beyond, rather than tiny spaces in dense urban areas.

Big Flips Are Being Supported By Inflation

We are currently experiencing some of the most fierce inflation in almost 250 years. That’s bad for most people, but is definitely working in favor of real estate investors, flippers and wholesalers.

Rental rates are up 70% in many areas. 30% plus home price appreciation seems very common.

This is enabling investors to make amazing profits. Such as the recent $190M flip by fund billionaire Dan Och, who more than doubled his purchase price of $93M in 2019.

Yes, They Are Making More Real Estate

One of the biggest myths in real estate is that they aren’t making more of it. That’s simply not true.

It is an old saying used to pump up offers on prime real estate. Yet, over the past couple of decades we’ve seen that it is possible to create more land.

Dubai has been building artificial islands for luxury real estate projects for many years. All of the space exploration we’ve been doing is even opening up the potential for real estate deals on other planets. Now, one professor has recommended expanding Manhattan artificially to lower property prices, and for building thousands of new affordable housing units.

Some may be disappointed if they held onto once prime real estate too long under the cloud of this myth. Yet, you can still make uncapped money wholesaling in old and new areas.

TikTok Overtakes Google

Last year TikTok overtook Google as the most popular website in the world, and surpassed Facebook as the most popular social network.

This is likely changing how people get their information, their perceptions and tastes, and more. Consider that when you are evaluating which properties will be in the most demand.

 

If you are frustrated with or fearful of other types of real estate investment, here are five important reasons that you should try wholesaling before you quit.

Real estate is still the best tool for getting and staying ahead financially. Yet, between recent events and the common nuisances of other forms of real estate, it’s understandable that many are tired or worried about their strategies. Wholesaling could be the cure you’ve been looking for.

Here’s why…

No Tenants Or Guests

Renters and Airbnb guests can really test your patience with the human race. They drive many good landlords with great intentions of helping and making a difference out of the business. With wholesaling you are in and out, and don’t have to deal with them. You can choose properties with no tenants and let someone else deal with leasing if they choose to.

No Repairs Or Contractors

Rehabbing and renovating properties can be an inspiring dream. Completing projects can bring a lot of satisfaction. Yet, every experienced flipper knows that these projects notoriously cost more than expected and take longer than planned. As well as how incredibly challenging it is to find those mythical good contractors. Wholesalers don’t have to deal with any of that. No repairs. No improvements. No juggling construction and maintenance crews.

No Credit Or Acquisition Capital

If you fear putting your personal credit on the line or don’t have good credit and cash to buy properties, then wholesaling offers access to 100% financing, without using your personal credit. Keep your credit free and healthy for other emergencies and optimize your personal finances. Keep your cash in reserve for plugging income gaps and when you face unexpected expenses, like medical bills.

No Captive Equity

Real estate’s ability to appreciate rapidly can be one of its great appeals and benefits. Of course, it can also depreciate just as fast in other phases of the market. It may ultimately bounce back and rise higher again. Though who wants to see their down payment or sweat equity evaporated? With wholesaling you are in and out before the market can change on you. All of your capital can then be used on marketing and scaling, rather than sitting stagnant.

No Financing Hurdles

Wholesalers use transactional funding which doesn’t rely on the usual underwriting hurdles, income verification, personal credit or even appraisal reviews. It’s super fast.

 

This year’s historic events have driven more interest in real estate investing and need to switch investment strategies than we’ve seen in at least 12 years. Where can you find the money to keep going or get started?

If anything real estate has only become stronger and has headed up faster as a result of recent events. More people are on the move than ever. Everyone from individuals to investment funds are looking for the safety and perks of real estate.

However, even those who were doing very well in real estate pre-COVID are switching up their strategies. Everyone wants to protect their capital, and needs more income. Many flippers and landlords are switching to real estate wholesaling. It is also the perfect strategy for those who are just starting out and may have lost jobs.

Of course, common wisdom says “it takes money to make money.” It doesn’t necessarily have to be yours though. So, where do you get it from?

IRAs & 401ks

New CARES Act rules and other changes due to COVID-19 are allowing individuals to tap even more of their retirement savings to move it to safety in other investments, or borrow against it. Those with 401k plans can now reportedly borrow up to 100% of their account balance, or $100k. This money can be used to invest in real estate. You may also have a couple more weeks to contribute to these plans and reduce your taxes, while improving your income. If this money is currently in the stock market, it is still exposed to some serious potential volatility.

If the Dow Jones just drops back to 2015-2016 levels, it could lose another 7,000 to 10,000 points. Or close to half of your portfolio value.

Partners

Partnering up is a common way to get started or grow in real estate. A few people can pool their money together and split the rewards. Or course, right now, many people are trying to preserve cash and may be leaner on savings than they have been in a while.

Traditional Mortgages

Traditional mortgages and even hard money loans could be a way to fund a move into real estate. Unfortunately, major banks have tightened up their criteria. Some have stopped home equity lending. It is noticeably more difficult to borrow from these sources than at the beginning of 2020. Though interest rates are extremely attractive if you can borrow.

Transactional Funding

In contrast, transactional funding is still plentiful. The best transactional funding lenders are still offering 100% financing, and credit and appraisals or lost jobs aren’t a problem. It’s a super easy way to fund your deals, while minimizing risk, and maximizing upside potential and returns.

Get in touch today to find out more about getting your approval, proof of funds letters and VODs to get more of your house offers accepted.

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